Bitcoin Reaches All-Time High Against Chinese Yuan, Exposing Central Bank Practices

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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February 28, 2024 15:36 EST

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Bitcoin surged to an all-time high against the Chinese Yuan (CNY) today, propelled by a recent rally and growing anticipation surrounding the Bitcoin halving event.

Bitcoin’s Value Fluctuates Across Global Markets

In a recent post on X (formerly Twitter), Lex—a Bitcoin supporter—highlighted that Bitcoin’s recent all-time high reflects the failure of various central banks’ monetary policies.

Bitcoin ATH in Chinese Yuan.

Bitcoin keeps exposing bad financial habits of central banks across the world. pic.twitter.com/r0rd0RGI8d

— lex (@mskvsk) February 28, 2024

Lex shared a screenshot of Bitcoin trading at 426,878 CNY. This is higher than its November 2021 ATH when the digital asset traded 424,793.38 against the CNY. While this is welcome news for many, Chinese residents cannot trade digital assets as crypto assets are banned in Asian nations.

The reason behind this is based on two premises. Firstly, no direct Bitcoin/CNY trading pair is available in the Chinese market. Given this, Bitcoin is often paired alongside the US dollar (BTC/USD), denominating the value against the USD.

The Bitcoin price in USD is then adjusted to the price of CNY against the dollar. This is why the Bitcoin price has hit an early ATH in Asian countries.

Another core reason a lesser USD value of CNY outperforms the USD $65,000 ATH price level is due to the market valuation of the CNY/USD three years ago. Back then, the CNY lost its value against the dollar, making Bitcoin much cheaper.

Meanwhile, the CNY has not been the only ATH-breaking fiat pathway for Bitcoin.

Also in India pic.twitter.com/LHb2r4pyMN

— Varun (@cjvarun) February 28, 2024

Another crypto investor posted a screenshot in response to Lex’s post with the caption, “Also in India.”

Bitcoin’s Deflationary Model Makes It A Store of Value

Global events like the Covid-19 pandemic have adversely impacted the traditional financial market. Despite a return to normal activities, several financial bodies have battled economy-crippling inflation, with access to goods and services becoming more expensive.

Combined with global wars, the purchasing power of many people has been greatly reduced.

Bitcoin has been posited by many as a strong alternative to regular fiat. Its 21 million maximum supply ceiling and deflationary nature have seen many supporters label it as a viable store of value.

Bitcoin’s skyrocketing prices are becoming even more attractive as many look to break away from state-controlled financial services.